The Classification of a Cost as Either Direct or Indirect

question 25

Multiple Choice

The classification of a cost as either direct or indirect depends primarily on:

• A)the computer tracing system within the organisation.
• B)the definition of the cost object.
• C)the knowledge of the accountant.
• D)the type of business.

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Definitions:

Distributive Justice

A principle concerned with the fair allocation of resources and benefits among members of a society or an organization.

Performance

The level of achievement or output that an employee demonstrates in their job duties over a certain period.

Bias

A predisposition or prejudice towards or against something or someone, often in a way considered to be unfair.

Affective

Relating to moods, feelings, and attitudes; often used in psychology to describe emotional states.